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Latvia: 678 81974

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    Hard times for Commerzbank

    Commerzbank, the second largest bank in Germany, is affected by the current economical climate as well. However, the bank takes action towards the creation of a stable environment for the future. Although Commerzbank makes 9.600 staff members redundant by digitising specific tasks, the bank will improve its focus and expansion to markets where growth is expected.

    The plans for the future must be approved by the board first. Upon approval Commerzbank starts to repel specific business units. Additionally, the bank expects to work in a more efficient way by digitising processes. The results should be measurable in 2020 and show stable growth and profitability by then.

    In the short term these measures are felt for employees and shareholders. The operation is estimated to costs 1.1 billion Euro. Funding comes through closure of business units, layoff of staff and by shutting down dividend payments until further notice for the shareholders of the bank.

    The impact of the global financial crisis hit hard at Commerzbank. In 2015, the bank enforced its capital position by the sale of 113,85 million stocks, in total value of 1.4 billion Euro. The bank was fined for 1.45 billion USD to settle with the U.S. Department of Justice for its involvement in different cases. Its role in the mortgage crisis made them file for joint-liability with Bank of New York Mellon, Deutsche Bank, Wells Fargo and HSBC. Commerzbank wants these four to share in the fines the bank got due to near-sightedness of collateral and failure to protect investors interest.

    In 2016, Commerzbank must make additional provisions for potential losses in the shipping departments. Redemption of costs for the reorganization result in a marginal profit for the year 2016. It is to date uncertain how the crisis that involves Deutsche Bank has an impact on Commerzbank. It is imaginable that the bank will experience consequential damages by the troubled Deutsche Bank.

    Contact:

    LEGAL FLORIS LLC – 5783431

    Telephone:
    001 646 513 2855 – USA
    00371 678 81974 – Latvia
    00357 25 057 544 – Cyprus
    00352 20 301970 – Luxembourg

    E-mail:
    [email protected]
    [email protected]
    [email protected]
    [email protected]

    Registered office:
    1013 Centre Rd. Suite 403-A
    Wilmington, 19805
    Delaware – USA

    Cyprus office:
    Kitiou Kyprianou street 31
    3036 Limassol – Cyprus

    Postal address:
    PO Box 50472
    3605 Limassol – Cyprus

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